Mobile profits on hold: Optus

The comment came as Optus reported its first-half profit had fallen 7.2 per cent on lower revenue as a three-way battle for share of the mobile market is playing out.

For years, mobile carriers were able to rely on discounting because growth in customer numbers held up profitability. But the Australian market is now hitting critical mass and customer growth is slowing.

''We are refocusing our business in this new market reality,'' Optus boss Kevin Russell said. The traditional focus on growing customer numbers was no longer appropriate, he added.

This means Optus is planning to target profitable growth over the chase for customer numbers and focus more on improving the customer experience.

Optus would reassess the subsidisation of handsets and tablets, including preferring more profitable existing customers for handset subsidies than new customers.

Optus, which is owned by Singapore Telecommunications, made a net profit of $319 million in the six months to the end of September, down from $344 million in the prior corresponding period.

Operating revenue in the six months of $4.48 billion was down 3.7 per cent from $4.65 billion in the same period the previous year.

Revenue declines were driven by pressures across two key business units - mobile and fixed line services for consumer and small business. Revenue for Optus' mobile division, its largest revenue earner by far, declined by 4.7 per cent.

Though the number of mobile customers increased to 9.5 million from 9.2 million, average revenue per user fell from $46 to $43.

Mr Russell said the company's rollout of its high-speed 4G mobile phone network was proceeding well but it wouldn't yet reveal its subscriber numbers.

Optus has launched 4G services in Melbourne, Sydney, Perth and Brisbane and was planning to fill out the capital city footprint by the first quarter of next year.

Mr Russell would not reveal the number of 4G-compatible devices sold to date, but said the figure was tracking customer growth. He said the rollout was on track and the customer experience had been ''incredibly positive''.

He said the launch of 4G services had been driven by the release of the iPhone 5.

With AAP

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